2 weeks Ago By C Shivakumar
CHENNAI: The state’s manufacturing sector has shown significant resilience and expansion in recent years, with employment levels, productivity, and wages witnessing steady growth. The latest data reveal employment per factory rose to 88 persons per factory in 2022-23, suggesting a growing labour absorption capacity and a robust industrial base. The increase in workforce indicates industries are expanding their operations, creating more job opportunities, and fostering economic stability, according to the Economic survey report which was unveiled by the State Planning Commission.
However, the unemployment rate for both male and female youths in the state, although showing a decline from 2019-20 to 2023-24, was 12.7% in 2023-24, compared to the national figure of 9.8%.
For female youth, it stood at 21.9%, against the all-India figure of 11%. Productivity has increased, with the net value added per person rising from Rs 5.
2 lakh in 2020-21 to Rs 6.95 lakh in 2022-23. This growth is attributed to higher efficiency, improved technology adoption, and increased investment in the sector.
Additionally, wages and salaries per worker have consistently risen, reaching Rs 2.99 lakh in the year 2022-23. The upward trend in earnings highlights better compensation structures and a potential enhancement in workforce skill levels, making the labour market more attractive for skilled professionals.
Tamil Nadu continues to lead in industrial performance, driven by its diverse and expanding manufacturing base. The top five industrial sub-groups, based on their average share in the state’s manufacturing Gross Value Added (GVA) per worker from 2019-20 to 2022-23, include the manufacture of motor vehicles, trailers, and semi-trailers, which contribute 17.95%, followed by the manufacture of textiles at 10.
05%, the manufacture of machinery and equipment at 10.03%, the manufacture of wearing apparel at 6.92%, and the manufacture of food products at 5.
95%. Together, these industries account for approximately 51% of the state’s total manufacturing GVA. Other key contributors include the manufacture of chemicals and chemical products at 4.
74%, rubber and plastic products at 5.01%, and other transport equipment at 4.94%.
With an aging population and a limited window to harness its demographic dividend over the next two decades, Tamil Nadu is prioritising policies that stimulate high-value industries and expand mass employment-generating sectors. Special policy initiatives are needed for industries experiencing slower growth, ensuring a balanced industrial ecosystem that supports both innovation and large-scale job creation, according to the Economic Survey..
